Sales Tax
01.The Extra Cents at the Checkout
Have you ever tried to buy a toy that costs exactly $10, but when you go to pay, the cashier asks for $10.80? That extra 80 cents is sales tax! Sales tax is a small percentage added to the price of items you buy at stores.
02.State and Local Funding
Sales tax rates are set by state and city governments, so they are different depending on where you live. Some states have no sales tax at all, while others have rates around 8% or 9%. Essential things like raw groceries are often tax-free to help families save money.
03.How it Works
The store collects the sales tax from you and sends it to the government. It's a simple way to collect taxes based on how much stuff people buy.